Solve the problem.
-Suppose you pay $1.00 to roll a fair die with the understanding that you will get back $3.00 for Rolling a 6 or a 5, nothing otherwise. What is your expected net winnings?
A) $0.00
B) -$1.00
C) $1.00
D) $3.00

Question

Quizplus · Accepted Answer

The expected net winnings are calculated by multiplying each outcome by its probability and summing these products. Rolling a 5 or 6 (2 outcomes out of 6) gives $2 net gain ($3 received minus $1 paid), and the other 4 outcomes result in a $1 loss (nothing received minus $1 paid). The expected net winnings = (2/6)*$2 + (4/6)*(-$1) = $0.

Solve the Problem. -Suppose You Pay $1.00 to Roll a Fair Die with Fair